The document lists government spending among the economic risks, which may be minimized by consistently carrying out the announced reforms. The analysis mentions the areas of public administration, healthcare and education where expenses could be cut. Almunia told the Hungarian press that the commission’s evaluation is positive, but the EU recommendations are to be followed for the successful completion of the program. The 7.9% inflation figure for last year raises concerns and it is important to meet this year’s target of 4.8%, the commissioner added.
The government must continue its strict budget policy and the structural reforms that have begun, Finance Minister János Veres said at the usual government press briefing. The 2009 budget will have reserves that make sure Hungary’s budget deficit may remain under 3.2% of GDP, Veres said. The government aimed to carry out the most important economic reforms at the beginning of its mandate and these efforts were appreciated by the EU, Veres said. In connection with the discontinued circulation of Ft 1 and Ft 2 coins Veres said shopkeepers must round the final sum of the bill as a whole and not the price of single items. On the other hand, when the government pays social security or pensions, the sums will only be rounded up, which may be a Ft 100 million extra burden on the budget. The amount of student loans will also increase from September: state-financed students will receive Ft 40,000 per month and those paying for their own studies, Ft 50,000, Veres said. (Gazdasági Rádió, NG)
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